USDJPY – Down
The changes in the past trading day for this pair were quite significant. The dollar’s exchange rate dropped considerably, although it was expected that after the development of a clear impulse structure, the situation would stabilize for a while. However, that wasn’t the case. The downward movement continued and became even more aggressive.
Possibly, the observed downward impulse structure is a wave of a lower level, being wave 1. The subsequent rebound is wave 2, and the strong decline that occurred yesterday is wave 3.
In this case, the price may go a bit lower, where buyers might be able to stop the sell-off. This will start the formation of corrective wave 4.
There are no clear entry points at the moment, so it is recommended to observe the situation while staying out of the market.
Investment idea: flat.
You may check other analytical reviews on FreshForex website. Source: freshforex.com.
